United States
Wall Street powered ahead overnight as strong earnings from major tech names reinvigorated investor confidence and pushed the S&P 500 to its longest winning streak since August. The benchmark index rose 0.6%, marking its eighth consecutive gain, while the Nasdaq 100 climbed 1.1%, led by Microsoft and Meta. Both companies delivered better-than-expected quarterly results, with Microsoft jumping 7.7% and Meta up 4.2%.
Investor sentiment was also buoyed by reports the US is exploring easing export restrictions on Nvidia’s chip sales to the UAE, providing further support to tech shares. Meanwhile, a stronger US dollar and rising Treasury yields reflected tempered expectations for rate cuts this year, following data that showed a further contraction in factory activity.
Attention now turns to the upcoming US payrolls report, the final major economic release for the week. In after-hours trading, Apple fell despite solid overall results, as China sales declined more than expected. Amazon also came under pressure after issuing a softer-than-anticipated profit outlook.
Europe
European markets were largely subdued on Thursday with most bourses closed for public holidays. London’s FTSE 100 ended flat after a 13-day winning streak—its longest since 2017—was interrupted by mixed earnings results. Lloyds Bank dropped 2.6% after missing forecasts, while Novo Nordisk gained 2.1% on strong data from a liver treatment study.
The FTSE 250, more closely tied to the UK economy, gained 1.3%. Broader sentiment remains cautious despite April’s rebound, with strategists warning that tariff-related uncertainty could continue to cap European growth. German and British bond yields moved modestly, reflecting a holding pattern ahead of further trade developments.
Australia
The ASX looks set for a weaker open this morning, with ASX200 futures down -32 points or -0.39%. The local sharemarket extended its rally for a sixth straight session on Thursday, with the S&P/ASX 200 adding 0.2% to close at 8,145.6—its highest level in two months. The All Ordinaries rose 0.3%, driven by strong performance from the technology sector, which surged 4% on optimism around data infrastructure spending by US tech giants.
NextDC rallied 4.6%, WiseTech added 6.6%, and Xero rose 3.2%. However, weakness in resources weighed on the broader market. BHP and Rio Tinto both slipped nearly 1% as iron ore prices declined on weaker Chinese data. Energy stocks also struggled after Brent crude fell to US$61 a barrel, with Woodside down 2.6% and Santos off 1.5%.
Judo Bank was the day’s biggest laggard, dropping nearly 17% after flagging softer lending growth. In contrast, Platinum Asset Management soared over 11% following news of a potential merger with L1 Capital. Woolworths rose 1.2% after reporting a jump in online sales to $2.2 billion.
ASX futures are pointing to a flat open, down four points ahead of today’s retail and inflation data.
Commodities
Oil prices recovered overnight as US sanctions threats and a broader equity rally helped lift sentiment. West Texas Intermediate rose 1.5% to US$59.06 a barrel, while Brent crude gained 1.3% to US$61.85. Gold declined 1.8% to US$3,228.43 an ounce amid reduced demand for safe-haven assets as US-China trade talks showed signs of progress.
Iron ore fell 1.2% to US$95.20 a tonne on continued concerns over Chinese demand. The US dollar strengthened across the board, pushing the Australian dollar 0.3% lower to US$0.6384. The euro and pound both fell 0.4%, while the Japanese yen dropped 1.7%—its sharpest one-day decline in months—after the Bank of Japan revised its inflation outlook.
In digital assets, Bitcoin gained 2.3% to US$96,881 and Ether rose 2.8% to US$1,844.
Economic Calendar
Australia:
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Q1 Retail Sales, Producer Price Index 11:30
US:
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Non-Farm Payrolls, Unemployment Rate 22:30
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
